Because consumer spending accounts for two thirds of the economy, and retail sales account for nearly half of total consumer spending, retails sales is a key indicator of the economy’s health. Since the retail sales data are extremely volatile from month to month, it would be more reliable to analyze the retail sales data in a 3 months to the previous 3 months analysis rather than month to month. Foremost, retail sales is a direct indicator that tracks the money value of goods sold within the retail trade by taking a sampling of entities involved in the business of selling end products to users. Retail sales also give a direct signal on the consumers’ appetite on spending on goods. That is, it reflects the strength of consumer spending as well as the degree of optimism that consumers are conveying for the state of the economy through their spending activity and savings. Further, retail sales provide a direct indicator for an economic slowdown or an economic
Because consumer spending accounts for two thirds of the economy, and retail sales account for nearly half of total consumer spending, retails sales is a key indicator of the economy’s health. Since the retail sales data are extremely volatile from month to month, it would be more reliable to analyze the retail sales data in a 3 months to the previous 3 months analysis rather than month to month. Foremost, retail sales is a direct indicator that tracks the money value of goods sold within the retail trade by taking a sampling of entities involved in the business of selling end products to users. Retail sales also give a direct signal on the consumers’ appetite on spending on goods. That is, it reflects the strength of consumer spending as well as the degree of optimism that consumers are conveying for the state of the economy through their spending activity and savings. Further, retail sales provide a direct indicator for an economic slowdown or an economic